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Are you ready for a new ride? Whether you're looking to upgrade from your current vehicle or you're in sudden need due to a recent loss, the car buying process can feel overwhelming. At First Bankers Trust, we understand the complexities of purchasing a new car—especially the financial aspects.

That's why we've compiled this comprehensive guide to help you navigate from budgeting to driving off the dealership lot. Keen to start right away? Apply online for an auto loan and get pre-approved today!

Buy vs. Lease: Making the Right Choice

One of the earliest decisions you'll face in your car-buying journey is whether to buy or lease. Here's a quick rundown to help you decide:

🔑 Buying: When you buy a car, you have the option to pay in full or make a down payment and finance the remainder. Owning a car gives you the freedom to keep it as long as you wish or sell it whenever you choose. Once your loan is paid off, the vehicle is yours completely.

💳 Leasing: Leasing a car often comes with lower upfront costs and monthly payments. However, you do not own the car at the end of the lease term and there are mileage limits to consider.

Benefits of Buying

📈 Investment: Purchasing a vehicle is generally more beneficial in the long term, especially if you plan to keep the car for many years.

💸 Freedom of Choice: Buyers enjoy a wider selection of models and the option to customize their vehicles.

💰 Equity Building: Every payment you make on a financed car builds equity, moving you closer to outright ownership.

Factors to Consider with Leasing

Leasing a vehicle can be an attractive option if you enjoy driving a new car every few years and prefer lower monthly payments. However, factors to consider before heading to the dealership:

  • No Equity Building: Unlike buying a car, leasing does not contribute towards any ownership interest. You make monthly payments to use the vehicle for a set period, but at the end of the lease, you have nothing to show for it financially. You must return the car unless you opt to purchase it at a residual value determined at the start of the lease.
  • Mileage Limitations: Leases come with annual mileage caps, typically ranging from 10,000 to 15,000 miles per year. If you exceed these limits, you can face hefty penalties, often charged per extra mile. This can add up quickly, especially if you have a long commute or like to take road trips.
  • Wear and Tear Charges: At the end of a lease, any excessive wear and tear on the vehicle can result in additional charges. This can include anything from minor dents and scratches to worn tires and interiors. You'll need to maintain the car in very good condition to avoid these extra fees.
  • Lack of Customization: Leased vehicles cannot be modified or customized as you do not own them. If you enjoy personalizing your car, leasing might not suit your needs.
  • Long-Term Cost: While leasing might seem cheaper in the short run due to lower monthly payments, it could be more expensive over the long term. Since you’re not building equity, leasing continuously can result in higher lifetime transportation costs compared to owning a car.

Leasing a car might be the right choice if you prioritize driving a new model every few years and you can stay within the mileage and condition limits. However, if you're looking to build equity, prefer fewer restrictions, and want the freedom to customize your vehicle, buying might be a better option.

Navigating Auto Loans with First Bankers Trust

Whether you plan on leasing or buying, you should consider your options for financing. Our auto loans come with competitive rates and flexible terms, designed to fit your budget and lifestyle. Learn more about our pre-approval process to make your car shopping experience as smooth as possible.

First Bankers Trust is more than just a financial institution; we are your partners in navigating significant life decisions. From choosing the right car to securing the best financing options, our team is here to support you every step of the way.

Ready to take the next step? Fill out the form below to get more information or click here to start your application! Your dream car awaits, and we're here to help you get behind the wheel confidently and easily.